In the last 24 hours gold has surged strongly higher to a five month high above $1265 after enjoying some solid support from the key $1240 level. For the last couple of weeks gold has consolidated a little resting on support at $1240 after making a strong rally back towards this level, which had become significant when it offered reasonable resistance halting its climb a couple of months ago. After struggling with the resistance level at the $1240 level for several weeks, it fell back to another key level of $1200 where it bounced off strongly. The $1240 level provided some support in July and more recently pushed gold lower in October, so it is significant that it has now broken higher. For the most part in the last couple of months gold has made a home in between two key levels of $1200 and $1240, and the markets were watching closely to see which way the next big move might be.